Canara Bank cuts interest rates

Canara Bank has reduced interest rates for housing loans, vehicle loans and domestic term deposits effective from March 11.

Home loans up to Rs 30 lakh would now be at 8.25 per cent for the the first 12 months, 9.25 per cent for the next 48 months and BPLR minus 2.50 per cent subject to a minimum of 10 per cent thereafter.

For loans between Rs 30 lakh and Rs 1 crore the rate will be 9 per cent for the first 12 months, 9.75 per cent for the next 48 months and BPLR minus 2.00 per cent subject to a minimum of 10.50 per cent thereafter.

With this, for each Rs 1 lakh, the EMI will be Rs 790 (during the first 12 months), Rs 860 (for the next 48 months) and Rs 900 thereafter for loans up to Rs 30 lakh. Similarly, the corresponding EMI will be Rs 840 (for the first 12 months), Rs 890 (for the next 48 months) and Rs 940 thereafter, for loans above Rs 30 lakh.

"Borrowers can now plan their housing loan commitments without any apprehension as the interest rate is certain for the first three years, and thereafter linked to BPLR," the bank said in a statement.

The reduced rates on home loans will be offered till December 31, 2009.